SEC approves REIT offers of RLC, Megaworld

MANILA, Philippines — The Securities and Exchange Commission (SEC) has approved the real estate investment trust offerings of the Gokongweis’ Robinsons Land Corp. (RLC) and Andrew Tan-led Megaworld Corp.

RL Commercial REIT and MREIT will add to the growing list of REITs in the market following the debut of Ayala Land’s AREIT Inc. of Ayala Land Inc. and DoubleDragon Properties’ DDMP REIT Inc. as well as the ongoing REIT offering of Filinvest Land Inc.

Robinsons’ RL Commercial REIT Inc. and Megaworld’s MREIT Inc. will offer as much as P26.7 billion and P27.3 billion worth of shares, respectively.

REITs are companies that own income-generating real estate assets such as apartment buildings, office buildings, medical facilities, hospitals, hotels, resorts, highways, warehouses, shopping centers, railroads, among others.

A REIT is a type of investment instrument that provides a return to investors derived from rental income of the underlying real estate asset.

RL Commercial REIT will offer up to 3.3 billion secondary common shares at a price of up to P7.31 per share, with an over-allotment option of up to 305.1 million common shares, to raise up to P25.88 billion in net proceeds should the overallotment be fully exercised.

Based on the latest timetable submitted to the SEC, RL Commercial REIT will conduct the IPO from Aug. 31 to Sept. 8 and list on the PSE on Sept. 20.

RL Commercial REIT’s portfolio includes 14 commercial real estate assets with an aggregate gross leasable area (GLA) of 425,315 square meters.

Its commercial spaces are primarily leased for office purposes, which may be transformed into retail spaces as required.

MREIT, meanwhile, will offer to the public one billion secondary offer shares priced at up to P22 per share, with an overallotment option of up to 161.7 million common shares.

Megaworld estimates to generate up to P26.3 billion in proceeds should the overallotment option be utilized.

The IPO is expected to run from Aug. 23 to 27 in time for the REIT’s listing on the PSE on Sept. 6.

MREIT’s initial portfolio covers an aggregate GLA of 224,430.8 sq.m. across 10 properties, with an aggregate appraised value of about P49.32 billion. Its properties are spread out across Metro Manila, primarily in Taguig City and Quezon City, as well as in Iloilo City, according to its filing.